Beijing’s wealth gap is extensively on the rise and Xi Jinping has come up with a genius idea to solve the problem. What if CCP takes away the riches from the rich and makes them poor too? This would certainly decrease the gap between rich and poor significantly. Nobody could have thought this as a serious policy choice, but Xi Jinping seems to be adamant on doing the same.
The latest set of crackdowns on the Alibaba and Jack Ma as well as promulgating draconian laws to streamline the real estate sector seems to be the new trend and in line with Xi Jinping’s policy of making the rich; poor.
Chinese Communist Party in the time period when Mao was the leader practised ‘equal distribution of poverty’ as it was during his hellish era when any glimpse of capitalism or inclination towards anything else than the CCP view could either get you killed or in the worst-case scenario, get you admitted to re-education camps, which were basically a lifetime of mental torture. While the later leaders moved away from Mao’s policies and drove Chinese industrialization, Xi Jinping is trying to take back the country to the era of Mao.
Beijing started with the campaign for eliminating absolute poverty in 2015 and as per the CCP official statistics; it was accomplished by last year. However, notwithstanding absolute poverty, the gap between the rich and the poor seems to have been on an upward trajectory catalyzed by the booming asset growth among China’s wealthy and urban middle class. It has also led to the negation of any efforts which were undertaken to bridge the gap between rural and urban incomes.
In a speech delivered at the Communist Party’s Central Party School this week, Chinese President Xi Jinping reiterated the importance of “common prosperity”, saying it is not only an economic issue but also a major political issue critical to the party’s rule. And he called on the government to proactively tackle problems such as income gaps to improve people’s sense of “gain, happiness and security”. However, the method employed by Xi Jinping and the CCP since then is really absurd. The CCP has started targeting the capital generators of China and Jack Ma being the biggest fish is targeted on priority.
As earlier reported by TFI, Tencent and Alibaba, two of China’s leading business firms are now being culled all around the world due to China’s aggressive diplomatic practices and now Xi Jinping is threatened for his position as the businesses are losing worldwide due to Beijing’s aggressive tactics. To secure his position, Jinping is strategically culling the big internet giants to and its Tencent’s turn to pay the price for being a big successful ‘Chinese’ company.
The similar scenario is for the other private sector companies, which has even been flagged by the IMF. While the Chinese government has provided liquidity and support to the public sector, it has not provided equal support to the private sector and this was highlighted by the International Monetary Fund. The growth was unbalanced, the IMF noted, citing private sector spending. As such, it said, support should be directed to spur consumption to achieve balanced growth. But, if we try to connect the dots, it looks as if CCP is hell bent to kill the private sector and the capitalist class, to bridge the gap between the rich and the poor.
The economic policies of XI Jinping are a complete failure. It was because of the astute economic development model that his predecessors followed that China could sustain Xi’s absurdity for almost a decade. However, with the world turning its back on China and its policies taking the economy down, the country will face huge economic as well as social challenges, and Xi Jinping cannot handle it.